This market is very interesting. What I am seeing is an active market for properly priced properties that are well located with good floor plans that show well, but that properties that have some problems, such as a strange lay-out, deferred maintenance, poorly designed remodel, or that are significantly over-priced are sitting on the market. My last 2 listings sold within 3 days of being placed on the market, and both were in the mid $400,000 to $600,000 range. The most important factor which led to their quick sales was that the sellers agreed to let me help them “stage” their property. Because of this, both properties showed like a model home.
Most of the problem in the real estate markets are occuring in this price range where first time buyers got into financial problems when they financed their purchases with 100% variable rate financing and were unable to afford the increase in the monthly payments when short term interest rates bumped up. Interest in this price range by buyers is still strong, and many properties that are well located and show well are receiving multiple offers. I have one client who has recently placed full price offers on 2 properties in the mid $400,000 range in San Pedro and still lost out to other buyers.
Homes in the $1 million and over price range have faired fairly well in this market, particularly on the Palos Verdes Peninsula. There have been some recent decreases in the list prices of homes, but most of this has been a result of overly aggressive initial pricing by the listing agents. Homes prices generally are still above year ago levels. One property was recently listed for sale in lower Lunada Bay in Palos Verdes Estates, and they received several offers in excess of the list price. This home was in a very desireable area and demonstrates that demand for well located propeties is still strong.